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Expert answer · 2 min read

Is my Shop Pay Installments offer increasing AOV without increasing returns?

As an e-commerce manager, I'm trying to understand the impact of Shop Pay Installments on my store's average order value (AOV) and return rates. I've recently implemented this payment option, but I'm unsure how to accurately measure its effectiveness. I want to know if breaking purchases into smaller payments is genuinely driving higher-value orders without creating a corresponding increase in product returns or customer dissatisfaction. What metrics should I track, and how can I determine if this financing option is truly beneficial for my business?
Muhammed Tüfekyapan

Muhammed Tüfekyapan

Founder & CEO, Growth Suite ·

The short answer

Shop Pay Installments consistently increases AOV by 50-85% for high-ticket items. Return rates for installment buyers are slightly higher (3-5%) due to buyer's remorse on larger purchases, but the AOV uplift significantly outweighs the return cost in most categories.

In depth

Shop Pay Installments: AOV Impact and the Returns Tradeoff

Shop Pay Installments (BNPL) removes the biggest friction for high-ticket purchases: the psychological pain of paying a large sum upfront. Splitting a $200 purchase into 4 x $50 payments fundamentally changes how customers perceive affordability - and this change in perception is reflected directly in higher average order values.

Shop Pay Installments Performance Data

MetricWithout InstallmentsWith InstallmentsChange
Average order value$95$148 (installment orders)+56%
Conversion rate (eligible visitors)2.8%3.4%+21%
Return rate8%10-12%+3-4%
Net revenue per installment buyerBaseline+44-52% after returnsStrong positive

Optimizing Installments Display

  • - Show installment messaging on PDPs at or near the price ("or 4 payments of $X with Shop Pay")
  • - Enable on collection pages for product grids that include high-price items
  • - Include in cart summary to reinforce affordability at the decision moment
  • - Test displaying installments for all products over $50 (Shopify's minimum threshold)

Installments + Growth Suite: For high-ticket items where installment payment is available, Growth Suite's Trigger Campaigns can reference affordability in the offer copy: "Get 10% off + pay in 4 installments from $X." This dual message (immediate discount + payment flexibility) addresses both price resistance and commitment anxiety - the two primary blockers for high-AOV e-commerce purchases.

Managing Installment-Related Returns

  • - Monitor return rate segmented by payment method monthly
  • - If installment returns exceed 15%, review which products drive the highest return share
  • - Add detailed size guides, comparison charts, and "how to choose" content for high-return categories
  • - Consider requiring full return shipping payment for installment buyers above a return rate threshold

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